Australia City

Forex And Binary Options Markets Drop

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The forex and binary options markets are falling to start the new week in Asia after building approvals in Australia declined and China sought to cool their property market. China’s Purchasing Manager’s Index for Services also came in weaker than expected. The data coming out of China has been rather weak and that has investors concerned. Weakness in China hurts Australian exporters as they are dependent on China’s economy for growth. The Aussie dollar is lower in the forex and binary options market along with the ASX 200. The weakness in the ASX 200 is being led by the mining sector.

Aussie Dollar At 8 Month Low In Forex And Binary Options Markets

The Aussie dollar is weaker against all its major trading peers today. Building approvals in Australia declined as the data continues to point to a weakening Australian economy. This is the second straight month that building approvals dropped. The interest rate cuts don’t seem to be helping the economy. If the data doesn’t get better, the RBA will likely have to cut interest rates further. The RBA meets tomorrow and it’s unlikely that they will cut rates at tomorrow’s meeting. Traders are expecting a rate cut at the next meeting in May.

Binary Options On Resource Stocks Lower

The resource sector took the Australian share market lower today. The ASX 200 closed down 75.6 points to 5010.50. BHP Billiton closed lower by $1.27 to $35.57. Rio Tinto ended the session down $2.43 to $63.65. The perceived slowdown in China is hurting Australia commodity producers and there’s a worry that iron ore prices have peaked and are heading lower.

Japanese Yen Strengthens In Forex And Binary Options Trading

The yen is strengthening as investors pare risk as global economic data comes in weaker than expected. Investors are also facing fresh concerns over Italian elections and the uncertainty there. There’s talk of new elections in Italy and that’s the last thing the markets want. Voters in Italy are upset with austerity measures enacted by former Prime Minister Mario Monti.

Binary Options On Commodities Remain Weak

Commodities remain weak as investors fret over a possible slowdown in China. A weakening Chinese economy is very bearish for commodities as that signals less Chinese demand. Investors in commodities have been trimming their net long exposure and scaling back.

Weakness in the commodity sector is being led by crude oil. WTI is down 43 cents to $90.25 and Brent is at $110.22, down 18 cents. Gold is bucking the trend currently and is up over $3 to $1576.

Economic Data Calendar

All Times GMT

  • 0800 Spanish Unemployment Change 77.50K forecast 132.10K prev (EUR)
  • 0930 British Construction PMI 49.0 forecast 48.7 prev (GBP)
  • 0930 Sentix Investor Confidence -5.2 forecast -3.9 prev (EUR)
  • 1000 European PPI (MoM) 0.5% forecast -0.2% prev (EUR)
  • 2230 AIG Services Index 45.3 prev (AUD)

As you can see the data points of the day already occurred with the release of the Australian building approvals and China non-manufacturing PMI. Forex and binary options traders need to pay attention to the political commentary out of Italy and hopefully there’s a resolution to that country’s election crisis. Investors will also be bracing for economic news later in the week.

As always good luck to all forex and binary options traders. Be sure to check back for the latest updates!